Growing your investments

Investing for growth

Emerging Market Funds | Commodities | Passive Funds | Smaller companies funds  |  Other growth funds

Structured products


When it comes to choosing an investment for growth the option you go for will generally depend on your circumstances and what you’re saving for.

The range of investment funds aiming to return growth to investors include the more cautious options that are exposed to different assets to riskier funds investing in emerging equity markets.

There are also several fixed term options available in the form of structured products which have the potential to return a defined level of interest.

Emerging market funds

Emerging market funds have been a popular choice for many investors as they provide exposure to the world’s fastest growing economies. Investment funds in this sector may invest in a single country, a region or globally.

The focus for funds is often finding companies that can benefit from national economic growth and also exploiting trends such as growing numbers of consumers. The majority of funds aim for a return over a longer term horizon, of five years or more.

Emerging market funds are higher risk funds, which may experience difficulties with dealing, settlement and custody.

Commodities

Specialist funds focussed on raw materials and energy aim to return growth to investors. Tied to economic growth, supply and demand, commodities can yield returns but are an inherently volatile asset. Commodity funds in the Select 100 invest in the equity of companies in this sector.


Passive funds

Also known as index or tracker funds, this type of investment fund has holdings that replicate or are representative of a particular index or market. For example, passive funds are available that will track the FTSE 100 Index or the FTSE World Europe Index, excluding the UK.

See the tables below for some examples of these growth funds:

Emerging Market Funds
Fund ManagerFundSectorFactsheetMore info
RCM BRIC Stars SpecialistFactsheetMore Info >
The aim of the fund is to produce long-term capital growth by investing predominantly in the equity markets of Brazil, Russia, India and China. Up to a third of the fund’s assets may be invested in companies based in other countries that are likely to benefit from the BRIC phenomenon. See latest fund factsheet for details.
Neptune Russia and Greater RussiaSpecialistFactsheetMore Info >
The investment objective of the Neptune Russia & Greater Russia Fund is to generate capital growth from investment predominantly in Russian and Greater Russian securities or securities issued by companies transacting a significant proportion of their business in Russia and Greater Russia. See latest fund factsheet for details.
Fidelity South East AsiaAsia PacificFactsheetMore Info >
Capital growth fund which invests in companies located in the Pacific Basin, excluding Japan. See latest fund factsheet for details.

The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below.

Commodity Funds
Fund ManagerFundSectorFactsheetMore info
BlackRock Gold & GeneralSpecialistFactsheetMore Info >
This is a specialist unit trust which aims to achieve long term capital growth by investing in gold mining and precious metal-related shares. It tends to be volatile and is particularly suitable for diversification in a larger portfolio. See latest fund factsheet for details.
First State Global Resources Fund SpecialistFactsheetMore Info >
Aims to achieve capital growth by investing in the natural resources and energy sectors globally. Save 100% on initial fund charges.
JP Morgan Natural ResourcesSpecialistFactsheetMore Info >
The Fund aims to invest primarily in the shares of companies throughout the world engaged in the production and marketing of commodities. The fund aims to provide capital growth over the long term.See latest fund factsheet for details.

The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below.

Smaller companies investment funds

One of the key sectors for funds aiming for growth are smaller and medium sized companies. Stock market indices of smaller and medium sized firms can outperform those made up of the largest companies, while smaller and medium sized companies have large growth potential as businesses. This sector can be more volatile than other types of equity with less liquidity in the market compared to investments in larger companies.


Other growth investment funds

The other options for growth investment funds are varied with funds investing in the largest companies listed in the UK or US, or specialist funds investing globally along themes or in specific sectors.

Absolute return funds aim to provide a return to investors independent of prevailing market conditions by using strategies that can profit from downturns as well as rising markets.

Multi-manager, multi-asset portfolio funds invest across a diversified pool of funds providing exposure to different assets. This approach can help reduce the risk of a fund by reducing the concentration of funds invested in one market. If bad times hit one market, others can benefit.


Visit the Select 100 page to view examples of these funds »


Structured products

There are two broad types of structured products – structured deposits and structured investments.

Both options can provide the potential for growth, often linked to the performance of a market, such as the FTSE 100 Index.

Plans offer the potential for a defined level of growth over a fixed term period, providing a different option for growth investors.

Structured deposits can also offer capital protection, while in a structured investment, similar to a fund, the initial capital invested may fall in value as well as rise.


See the table below for structured growth plans:


Growth Structured Deposits
ProviderPlan NameMaximum Potential Return*TermMore Info
Kick Out Deposit Plan

3%

per annum

Up to
6 years
More Info >
Capital protected deposit plan with the potential to mature after years 3, 4, 5 and 6. If the plan matures early it will return 3% times the number of years the plan has been in force. Also available for Cash ISA and ISA transfer.
* Maximum Growth Yields are not guaranteed and subject to certain conditions
Investing For Growth
 Product NameISA OptionMaximum Potential ReturnTermMore Info
FTSE 100 Enhanced Kick Out Planyes

10%

per annum

Up to
6 years
More Info >
Structured investment plan with the potential to mature after years 1, 2, 3, 4, 5 or 6. If the plan matures early it will return 10% times the number of years the plan has been in force. Also available for Stocks & Shares ISA and ISA transfer.
FTSE 100 Defensive Kick-Out Planyes

7.75%

per annum

Up to
6 years
More Info >
Structured investment plan with the potential to mature after years 3, 4, 5 or 6. If the plan matures early it will return 7.75% times the number of years the plan has been in force. Also available for Stocks & Shares ISA and ISA transfer.
Kick Out Deposit Planyes

3%

per annum

Up to
6 years
More Info >
Capital protected deposit plan with the potential to mature after years 3, 4, 5 and 6. If the plan matures early it will return 3% times the number of years the plan has been in force. Also available for Cash ISA and ISA transfer.

The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below. 

 Important Risk Information:

This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.

Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.